Difference Between Comprehensive Car Insurance & Third-Party Car Insurance

What’s the Difference Between Comprehensive and Third Party Car Insurance in UAE?

Let’s break down the differences between comprehensive and third party car insurance clearly —

Feature	Comprehensive Insurance	Third Party Insurance
Your car’s damage	✅ Covered (accidents, fire, theft, disasters)	❌ Not covered
Damage to others (third-party liabilities)	✅ Covered	✅ Covered
Theft, fire, natural disaster	✅ Covered	❌ Not covered
Agency or premium repair	✅ Included (for new cars or with add-on)	❌ Not available
Personal accident cover (driver)	✅ Usually included or optional	⚠️ Optional (not always added)
Towing & roadside help	✅ Usually included	❌ Rare or paid extra
Blood money (Diya)	✅ Included (as per UAE court rulings)	✅ Included
Premium cost	💰 Higher, but more protection (Generally, AED 1,200 - AED 5,000)	💸 Lower, but very basic (Generally, AED 630 - AED 1000)
Best suited for	New/financed cars, daily drivers, long-distance users	Older cars, budget-conscious owners

1. Comprehensive Example – Fatima’s SUV

Fatima drives a 2022 Toyota Fortuner. While heading to Al Ain on a weekend, a car cuts her off — she swerves and hits a barrier. Her front bumper is destroyed. Worse, flash flooding during the night soaks the interior.Her comprehensive policy kicks in:

• Repairs covered (agency repair included for 2 years)
• Flood damage included (as per her plan)
• Free towing arranged
• Temporary replacement car provided

Total savings? AED 12,000–18,000 in repair and service costs.

2. Third Party Example – Hassan’s Sedan

Hassan has a 2015 Honda Civic insured with a third-party plan. He gets rear-ended while exiting Sheikh Zayed Road. His bumper and taillights are damaged. Since he only has third-party insurance —

• His insurance will pay for the other car’s damage
• His own car? Not covered — he pays out of pocket

Out-of-pocket cost: AED 6,000+, even though the accident wasn’t entirely his fault.

What is Third-party Motor Insurance in UAE?

Third-party insurance is the minimum coverage every car owner needs to legally drive in the UAE. It protects you from costs if you cause damage to someone else’s vehicle, property, or injuries to people. It does not cover your own car or medical bills if you’re at fault.

Here’s what it usually includes —

• Damage to another person’s car
• Injury or death to another person (including blood money, as per UAE law)
• Property damage caused by your vehicle

What it doesn’t cover

• Your own car’s repairs
• Theft, fire, or natural disasters
• Off-road or personal damage unless you’ve added optional cover

This type of insurance works well if

• Your car is older or low in value
• You’re looking for a lower annual premium
• You’re willing to pay for your own repairs if something happens

What is Comprehensive Car Insurance in UAE?

Comprehensive insurance does what third-party doesn’t — it protects your car and the other person’s, even if you were at fault. Comprehensive car insurance is more complete. It covers you for —

1. Accidents (both your car and the other driver’s)
2. Theft or attempted theft
3. Fire and natural disasters (like flooding or sandstorms)*
4. Vandalism or riot damage
5. Replacement of your car in case of total loss (up to 6–12 months from first registration, depending on insurer)
6. Emergency medical expenses
7. Personal accident cover for you and passengers

(*In most policies, coverage for natural events is included, but check if it’s part of the base plan or an add-on.)

Comprehensive policies are ideal if

• You drive a new or financed vehicle
• You want protection regardless of who’s at fault
• You want options like car replacement, natural disaster cover, or agency repairs

Ask Yourself These Questions Before You Choose Between Comprehensive and Third Party Car Insurance

When you're confused between plans, it helps to stop and ask the right questions. These aren’t technical — they’re personal and get to the heart of the difference between comprehensive and third party insurance.

1. Is your car worth protecting or just keeping legal?

• If your car is brand new, under finance, or still under warranty,  then why risk it?
• On the other hand, if it’s older and you’re okay paying for your own repairs, third-party may be enough.

2. Do you drive daily or just occasionally?

• Daily drivers, highway commuters, and weekend travellers face more chances of mishaps.
• If you drive less often, mostly within one city, third-party car insurance might do the job.

3. Can you afford sudden repair costs?

• Would paying AED 5,000–10,000 after a minor accident be a major hit?
• Or would you rather pay a bit more annually and have those costs covered?

4. Would you need towing, agency repair, or a car replacement?

• These features usually come with comprehensive car insurance and not third-party plans.
• If you'd expect that kind of support, it's worth looking at the full coverage option.

5. What about floods, sandstorms or fire damage?

• In the UAE, natural elements can be as risky as traffic.
• Third-party motor insurance won’t help if a flood damages your engine, but many comprehensive policies will.

Frequently Asked Questions (FAQs)